Don’t Fall for This—Buying Funds Based on Track Record

Past performance does not guarantee future results. Everyone has heard this, but this is what it sounds like to be sold based on track record: “Have you been disappointed in your portfolio's performance? Are you new to investing and don’t know what to do? Take a look at these funds. They are our very best funds and beat all of your investments over the last few years. If you are unhappy with your plan, you should move over and invest with us. We have the best performing investments.” Today, Paul explains why it’s so frustrating to watch fund companies push their “best performers” onto advisors and investors. It comes down to understanding that these companies want you to buy high and have hidden all of their poorly performing investments from you. Later in the episode, Paul tackles the topic of Roth conversions and explains a common mistake people make when thinking about their taxes and investments.

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